Published: Feb 22, 2025 at 07:45 PM
Updated: Feb 22, 2025 at 07:32 PM
- Solana eyes recovery after a 45% drop, with targets set between $190-$210 amid cautious market sentiment.
- SOL finds support at $150, forming a curved bottom pattern that signals potential upside toward key resistance levels.
- A break above $190 could confirm short-term bullish strength, while failure to breach $200 may trigger another retracement.
XO shared insights on Solana’s price action, highlighting a potential mean reversion play. The trader noted a 45% drop from all-time highs, coupled with bearish sentiment surrounding token unlocks and criticism. Despite this, Solana is currently experiencing a potential rebound, with targets set between $190 and $210.
The SOL/USDT pair on Binance exhibits a strong downward trend, followed by a consolidation phase. Recently, The price indicated a critical technical level by filling an inefficiency from earlier price movement. Around $150, the market found short-term support, and buyers intervened to keep the price stable.
The chart highlights a curved bottom pattern, suggesting a potential move toward local resistance levels. If bullish momentum sustains, Solana could trade into the $200-$220 resistance range. The resistance zone, marked in gray, aligns with previous liquidity levels, indicating a possible sell-off area.
At present, SOL is trading around $173.01, attempting a recovery from its recent decline. A break above $190 would confirm short-term bullish strength. If buyers maintain control, Solana may reach its next resistance level above $200. However, rejection of resistance could lead to another retracement.
The recent downturn resulted in a 45.74% drop, with SOL losing 135.43 points. However, the local support at $150 has provided a foundation for potential price recovery. Market sentiment remains cautious, as bearish factors such as unlock concerns and negative sentiment weigh on investor confidence.
Despite these concerns, the current market structure suggests a possible bounce. Further declines may be forthcoming if Solana fails to breach that resistance. A confirmed break above $200 would shift momentum toward the bulls.
Technical indicators give strength to these support and resistance points and suggest strategic entry and exit points to traders. The next price action will determine whether Solana will again gain an upward momentum or enter renewed selling pressure.
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